How to Invest in Crypto… Without Investing in Crypto
Everyday I am hearing something new about cryptocurrencies. It’s not just the news that is bombarding me with new information. Even my clients are calling me to ask for my opinion of this esoteric asset class.
“Bitcoin is up 20%! Wait, Wait, Bitcoin is Down 20%!”
While I certainly have an opinion on the matter, I am neither bullish or bearish on the subject. Why you may ask? Because I don’t have to be and neither do you.
It is certainly possible that cryptocurrencies may take over as the dominant medium of monetary exchange. It is also likely that nothing comes of it. This is obviously a difficult subject to provide advice on. What metrics do I use to say that one cryptocurrency is better than the other? Do I evaluate based on market cap or number of users? Maybe I try and review overly complicated code that my Bachelor’s degree definitely didn’t prepare me for. So many questions with no historical data to validate them with.
But then I decided to take a step back. What would cause the rise of cryptocurrencies in our society? The answer to this is quite simple, mass adoption.
While it is easy to arrive at that conclusion you must review what mass adoption actually looks like. I don’t just mean with people buying and selling crypto on their preferred exchange. I mean a world where we are actively exchanging cryptocurrency for goods and services. A world where you pay your phone and utility bill with cryptocurrency.
The market will figure out the predominant currency / cryptocurrency for you. If cryptocurrencies become the wave of the future, your phone and utility company will likely figure that out way before you will. By investing in the stock market today you can passively invest into crypto if companies determine it to be valuable.
Many mutual funds and ETFs have already updated their prospectuses to allow for the ability to invest in crypto. So for those of you who are unsure of which companies utilize crypto, you can leave it to a professional manager to do the research for you.
So, am I freaking out about which cryptocurrency will take on the world? No, not at all. The market will figure it out for me.
Dislcosure: IntelliVest Wealth Management is a Registered Investment Advisor in the states of North and South Carolina. This article does not represent the views of IntelliVest Wealth Management. The views and opinions made are that of the author and should be treated as such. Please seek advice from your financial representative to discus your financial situation.